BFI: Currency market commentary



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BFI: Currency market commentary

26.05.2010 09:56 Wednesday

 This currency pair just after breaking support at 1.2330 peaked toward 1.2270 and lower.  Moreover, in case falls below 1.2240  the nearest pause should be not earlier than 50 pips lower. According to the current situation We suggest to use any occasional fall to buy euro and the first preferable level should be the support at 1.2270. However jump above 1.2330  means that the market may add 170 pips easily.


It seems that the resistance around 1.1650 may survive the temporary bulls attack with a possible down reaction as low as 1.1530. The resistance mentioned before shall be the perfect level for another movement lower especially when the support around 1.1450 is within our reach. On the other hand testing levels at 1.1700 may be only possible in case any longer march toward 1.1900.


This pair has a significant support around 1.4340 and falls below that level may drive this currency cross down to 1.4280. Today We forecast to open long positions from 1.4330 area with a stop loss order no more that 40 pips and  targets exactly around 1.4500.


As this pair is trying to defend support at 110.60 any stronger rebound may reach even 114.00  till end of the week. On the other hand falls below that support may smoothly add another 30/60 pips down so our recommendation perceives opening longs from 110.30 with a stop loss order around 109.90 while as testing  that level may be read as a change of sentiment for more bearish with targets below 109.00.